Despite the loss, UBS reported $22 billion in net new money in its wealth management arm, exceeding Goldman Sachs' expectations of $14 billion.
UBS now oversees more than $5 trillion in assets but faces challenges in retaining clients and staff.
UBS reported a net loss of $785 million for the third quarter of 2023, largely due to costs associated with its takeover of Credit Suisse.
UBS Group, a Swiss multinational investment bank and financial services company, has reported a net loss of $785 million for the third quarter of 2023. This loss is primarily attributed to the costs associated with the bank's recent acquisition of Credit Suisse, another Swiss bank. The expenses related to the takeover, which totalled $2 billion, have resulted in an 80% increase in staff costs. However, these costs are expected to decrease as the integration of the two banks progresses.
Despite the reported loss, UBS has seen a significant inflow of funds from clients. The bank reported $22 billion in net new money in its wealth management arm, exceeding Goldman Sachs' expectations of $14 billion. This has led to a 4% increase in UBS shares in Zurich. The bank now oversees more than $5 trillion in assets.
However, the bank faces challenges in retaining clients and staff. The number of employees has fallen from 119,100 in June to 115,981 in September. Furthermore, UBS has warned of an investigation into deficiencies in Credit Suisse's financial reporting in 2021 and 2022.
UBS CEO Sergio Ermotti, who was brought back to helm UBS through its takeover of Credit Suisse, expressed optimism about the bank's future. He stated that the integration of Credit Suisse is being executed at pace.